tsukoui wrote:Paphitis, leaving aside that your link is one of the most poorly written articles I have ever read, I would even go so far as to call it drivel, I'll address the main point as far as I can see, namely the calculation problem. This is something that deserves a proper study and there are numerous well written articles (as opposed to your one) that deal with it from both the left and the right. It is the right's most coherent argument against the Soviet Model and was first put forward by Hayek. There are two strands to the argument, the weak one and the strong one. Your article focuses on the weak one, the idea that it is too computationally intensive to solve the equations necessary for managing an economy. I recommend reading the work of Paul Cockshott to see that computationally the problem is perfectly solvable with todays computers. The strong argument is more interesting and is to do with the idea that the market acts as a kind of democracy, albeit a biased one, whereby what is produced is the result of everyone voting, i.e. spending money, on the products that they want. To my mind, failing to address this problem was the reason for the economic failure of the Soviet Union. In recent years there has been some suggestion that some form of peer-to-peer networking could address this, but the ideas have yet to be fleshed out. In other words it is an open problem, and this is why any attempt to impose communism at this stage in Cyprus would be premature. AKEL know this, which is why they are playing a purely caretaker role at present. There's a lot more I could add on the subject of communism, but let us see what you make of Paul Cockshott's work first.
I will make it easy for you.
I want you to address each of these points seperately:
Communism's main failure in practice comes from the failure of a centralized economy to function. Though socialists often attribute it to problems elsewhere, the simple reason behind this occurrence is the mathematic and physical impossibility of managing an economy from a centralized form. One of communism's main ideals is complete control over industries. In order to efficiently plan industries, communism must simultaneously account for all industries (there are billions of different industries) and their relationship with each other at the same time. Within each specific industry certain goods are internally consumed to produce more of a certain product. An example of this occurrence, which is true in any economic system, is the market for oil. For instance, to drill more oil requires the use of gasoline for transportation, generators, machinery operation, refinery operation, and a dozen other things. Therefore to get more gasoline and drill more oil wells, some existing gasoline must be used up in the process, or internally consumed. This occurrence exists in every industry to varying extents resulting in a massive structure of interlining and constantly changing relationships between all industries. Further, if production in one industry changes, this change effects all other industries in one way or another due to inter linking relationships and internal consumption. On top of these complex internal relations exists a tendency of change relating to substitute and complementary goods effecting related markets and further entangling the complex relationship between industries of a large economy.
Communism strives for the complete equality of all incomes, and therefore, everything. As income approaches complete equality, productivity disappears. For example: people work so they can make money to support themselves. They work driven by the incentive of making more money and succeeding. In capitalist systems, he who chooses not to work suffers the consequences while he who works receives the incentives, money, which he is working for. Human nature includes a desire to "do better" and, therefore, make more money or advance in a job. In an attempt to make more money, people are driven naturally work harder and longer, seek further education for themselves, and develop skills which distinguish them as rare talents among that labor which is available as supply. Under true communism, income is completely equal. When there is nothing to achieve by working harder or longer, people begin to become idle. People begin to work less or not work at all because there is no longer the incentive of making more money or advancing in job. When there are no workers, production drops to nothing. It will then be true that all incomes are equal but this equal income will be zero.
and
Communism's original and most basic principles deal with the rich owners and the workers or proletariats. Unfortunately for Marx's cause, a third order was coming to power and it would prove to be the larger and more powerful than either the proletariat or the capitalist aristocracy. This third middle grounds was completely misjudged by Marx and incorrectly lumped in with the bourgeois rich. Marx's entire theory was based on class struggle and a difference in these classes forcing a revolution to be followed by an "equality" of all classes (the irony: Marx and Engels were factory owners when they published the Communist Manifesto and Das Kapital!). The petit-bourgeois, Marx's term for the middle class, was only to further divide the upper and working classes by an irreconcilable rift. In reality, the opposite happened and the middle class actually bridged any "rift," that is to say if there was one in the first place! The arrival of the middle class practically ruins any chance for this revolution as well as any need for it. Further it presents a variable unaccounted for simply because it fits incorrectly into the communist and socialist theory. Strange that people put faith in a theory that completely misjudges the majority of the population!
And let's face it Tsuk. The USSR failed because it had no economy, at least for the masses that is. No one had any money to vote at all on any products they wanted or even basic essentials. So everyone was indeed equal alright. I would say most were equally poor and the country could not progressed because why work hard when you only fork for a willing?
In the end, they had a revolution against communism and the USSR fell apart! Disintegrated.
People have needs and Communism failed the people miserably!